Freight industry update: Where are we at today?

In Air Freight News COVID-19 Posted March 25, 2020 at 1:07 pm
By admin

Freight industry update

The latest announcements last night and today from the Federal and
various State and Territory Governments have put in place further restrictions
on gathering and movement. There is an expectation that a third wave of even
tighter restrictions is imminent.

While people are using the word ‘lockdown’ and preparing for restrictions
similar to those in other parts of the world we know that not everything can
stop and essential services will be required to operate for the community to
access food, petrol, pharmacies, medical facilities, etc.

Therefore ports and airports will continue to operate, and the
associated logistics chain will be required to support the clearance and
movement of freight, so supplies are maintained. It is our expectation that the
critical role forwarders and customs brokers play in this chain will also be

With this and the need to minimise the COVID-19 risk to our staff
and the wider community, Magellan Logistics has implemented a Work from Home
Policy for all staff for the foreseeable future.

In the course of the last few weeks, we have implemented a
collaboration hub as part of our normal operations and trained all staff to
enable them to work remotely. They will also be furnished with all the
equipment they need to do this.

All your usual Magellan contacts will be available to you via
email and able to respond to your needs as normal.  Our landline numbers will be diverted to staff’s
mobile phones and to make sure you can get in touch with the people you need
during this period you are also welcome to contact them on their mobiles.




  • The situation in China is improving with new confirmed cases being
    mostly overseas travellers.  There have
    been some non-symptom infection cases identified as well as some who had been
    cleared only to be re-tested as positive. However, the number of these types of
    patients is low
  • According to the Chinese Government checkpoints on roads have been
    reduced so most motorways/Highways are back to normal operation now. However,
    Hubei province still subject to regional restrictions
  • All provinces are moving towards normal production levels,
    including Hubei province. Travellers from Hubei are still required to
    quarantine 14 days, before going back to the office or factory. The Government
    is planning to totally unlock Hubei province around April 8.
  • Most provinces have announced they expect business and lifestyle
    back to normal in 2-3 weeks.
  • Currently, the average of the productivity in China is back to
    above 70%, however that calculation includes Hubei province so, in fact, the
    average in other provinces is much higher
  • According to the Chinese Government, all the Chinese ports will
    not implement 14 days quarantine period for shipping vessels unless special
    concerns are raised.






  • Many European ports continue to experience blank sailings and the
    dynamic nature of the situation at various land borders is increasingly impacting
    on sea logistics businesses
  • The lack of sailings from Asia has created an equipment imbalance,
    with high demand for exports from Europe not being able to access empty
  • Ports are operational albeit slightly slower than normal and cargo
    operators can work. As the situation develops in each country we will likely
    see, as we have in Australia, a range of new regulations and restrictions


South-East Asia

Various countries are instigating differing levels of
restrictions. In the Philippines, Luzon (Manila), Visayas (Cebu) and Mindanao
(Davao) had been placed under a state of “enhanced community
quarantine”. Obviously, this will impact operations due to the restricted

In Malaysia and India lockdowns have been announced and all
non-essential manufacturing, government and private business premises in these
countries are not operating. Essential services, as is the case in most
countries, such as ports and logistics companies, continue to operate.


New Zealand

New Zealand has announced a move to “level 4” lockdown
for 4 weeks as of today.



Italy has now enforced a lockdown from today through to April 3 to
contain the virus’ spread

Ports and businesses involved in the food industry and transport
(logistics) for essential services will not be impacted. All other factories have
been instructed to complete all orders/shipments before March 25 and then



Global Air Freight capacity has been severely reduced by the
grounding of a large portion of the passenger fleet. Charter aircraft and
dedicated freighters continue to be available; these alone do not provide
sufficient space to move the required volumes.

Many larger businesses have managed to secure arrangements for
charters or the use of passenger aircraft as cargo flights many SMEs do not
have the volume to justify such an outlay.

Please contact your Magellan representative on 1300 651 888 to discuss options for your Air Freight.

At Magellan Logistics, we provide freight management services and supply chain services throughout Australia. Contact us today for more information.

Source: Freight & Trade Alliance



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